First Mining Happy! Happy! Pleased with Adjournment!!!! This can 'only' be POSITIVE for Minor Shareholders!
First Mining pleased Coastal adjourns meeting to May 13
2015-05-06 02:33 ET - News Release
See News Release (C-FF) First Mining Finance Corp
Mr. Patrick Donnelly of First Mining reports
COASTAL GOLD SHAREHOLDER MEETING ADJOURNED
In accordance with the terms of a consent endorsement of the Ontario Superior Court, the meeting of shareholders of Coastal Gold Corp. to vote on Coastal's proposed arrangement with Sulliden Mining Capital Inc. will be adjourned to 10 a.m. (Toronto time) on May 13, 2015. The meeting was originally scheduled for May 6, 2015.
The deadline for the submission of proxies for use at the meeting is to be extended to May 11, 2015, at 5 p.m. (Toronto time), and the deadline for revocation of proxies is to be extended to May 12, 2015, at 10 a.m. (Toronto time).
On May 4, 2015, First Mining Finance Corp. announced that it had delivered an increased proposal to the special committee of Coastal. Under the First Mining proposal, First Mining would acquire all of the outstanding common shares of Coastal on the basis of 0.15 common share in the capital of First Mining for each one Coastal common share. The First Mining proposal implies a value of six cents per Coastal common share, which represents:
- A premium of 167 per cent to the implied value of 2.25 cents per Coastal common share under the Sulliden agreement (the total value of Sulliden's offer being $3.8-million as opposed to the total implied value of First Mining's offer, which is $10.2-million), based on the closing prices of each of First Mining, Coastal and Sulliden as of May 1, 2015;
- A premium of 261 per cent to the unaffected Coastal common share price on Feb. 27, 2015, the last trading day prior to the public announcement of the Sulliden agreement;
- A premium of 50 per cent to the current market price of the Coastal common shares.
First Mining continues to believe that its proposal is a superior proposal under the terms of the arrangement agreement dated March 1, 2015, between Coastal and Sulliden, and has extended the time for acceptance of the First Mining proposal to 5 p.m. (Toronto time) on May 13, 2015. To accept the First Mining proposal, Coastal is required to terminate the Sulliden agreement prior to such time. Coastal is entitled to terminate the Sulliden agreement in certain circumstances, including if it is unable to obtain the approval of its shareholders to the revised proposal by Sulliden.
Keith Neumeyer, chairman of First Mining, stated: "We are encouraged that Coastal has agreed to adjourn the meeting in order to allow the special committee adequate time to properly consider the First Mining proposal. We are confident that the First Mining proposal is clearly superior to the Sulliden offer and believe that the special committee, after considering the best interests of the Coastal shareholders, will agree. We continue to urge all independent shareholders of Coastal to vote against the Sulliden offer."
To vote against the Sulliden transaction, Coastal shareholders should complete a form of proxy or voting information form and deliver it prior to 5 p.m. on May 11, 2015, to Coastal's transfer agent, TMX Equity Transfer Services Inc., 200 University Ave., Suite 300, Toronto, Ont., M5H 4H1, or by toll-free North American fax number 416-595-9593. Coastal shareholders should also check the box withholding discretionary authority unless they intend to appoint a proxyholder who is not a member of management of Coastal.
To change previously cast votes, Coastal shareholders who have already submitted forms of proxy or voting information forms voting in favour of the Sulliden transaction can change their votes by signing a new proxy or voting information form bearing a later date and delivering it prior to 10 a.m. (Toronto time) on May 12, 2015, to Coastal's transfer agent, TMX Equity Transfer Services Inc., 200 University Ave., Suite 300, Toronto, Ont., M5H 4H1, or by toll-free North American fax number 416-595-9593.
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